Wisconsin Bank lends Local Furniture Company $150,000 on November 1. Local Furniture Company signs a $150,000, 12% 4 - month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31​ is:   A. debit Interest Expense and credit Interest Payable for $3,000   B. debit Interest Payable and credit Cash for $3,000   C. debit Interest Payable and credit Interest Expense for $3,000   D. debit Interest Expense and credit Cash for

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wisconsin Bank lends Local Furniture Company $150,000 on November 1. Local Furniture Company signs a $150,000, 12% 4 - month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31​ is:

 
A.
debit Interest Expense and credit Interest Payable for $3,000
 
B.
debit Interest Payable and credit Cash for $3,000
 
C.
debit Interest Payable and credit Interest Expense for $3,000
 
D.
debit Interest Expense and credit Cash for
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